HashKey Shares Slip After Initial Surge in Hong Kong Listing: A Reality Check for Crypto Enthusiasts?

HashKey's Hong Kong debut delivered a classic market rollercoaster—initial euphoria followed by a sobering slide. The pattern is familiar to anyone who's watched crypto-adjacent stocks try to woo traditional finance.

The Opening Bell Euphoria

The stock shot up out of the gate, fueled by pent-up demand and bullish sentiment around Asia's evolving crypto hub. It was a moment that had blockchain maximalists nodding approvingly from their digital trenches.

Gravity Always Wins

Then came the pullback. The shares slipped, trimming those early gains as profit-takers moved in and skeptics questioned the valuation. It's the old story—what goes up must consolidate, or correct, depending on your level of cynicism.

The Institutional Balancing Act

For all the talk of decentralization, the listing underscores a central truth: major crypto players still crave the legitimacy and capital of public markets. They want a seat at the old financial table, even as they promise to build a new one.

A Market in Search of a Narrative

The price action reflects the broader tension. Is HashKey a pure tech growth story, a regulated financial services play, or a proxy bet on crypto adoption? The market seems to be pricing in a bit of all three—and a hefty dose of uncertainty.

So, another crypto-native firm gets its stock ticker, and another learns that public markets can be less forgiving than a meme coin's Telegram group. The real test isn't the first-day pop—it's what comes after the champagne stops flowing and the quarterly reports start. Welcome to the big leagues.

This movement reflects investor caution amid ongoing volatility in the cryptocurrency market, which has experienced sharp swings after hitting record highs earlier this year.

Founded in 2018, HashKey operates Hong Kong’s largest licensed crypto exchange and offers other services such as asset management, brokerage, and tokenization.

The IPO was popular, with its institutional portion being oversubscribed 5.5 times and the retail tranche almost 394 times. The company has also clinched nine cornerstone investors, including UBS AM Singapore and Fidelity.

CEO outlook on long-term prospects 

Despite short-term market uncertainty, CEO and Chairman Xiao Feng expressed confidence in the long-term prospects of digital assets.

“My confidence is only growing stronger and I am more optimistic than 10 years ago because there are more regulation and compliance guidelines for us to follow, which will allow the industry to grow further,” Xiao said in a report by Reuters.

He added that Hong Kong’s supportive policies have helped HashKey expand, even as mainland China continues to impose strict bans on cryptocurrency trading, targeting scams and pyramid schemes.

It began reporting losses in 2022. For the first half of 2025, it posted a net loss of HK$506.7 million ($65 million), improving from HK$772.6 million ($99.2 million) in the same period last year. 

With operations projected to be cash-burning, at least for now, the company said it WOULD prioritize cash flow over near-term profitability and invest IPO proceeds into technology, market expansion, risk management, and tie-ups.

Rival crypto exchange OSL’s stock fell 4.29% to HK$16.96; over the last month, it has gained 10.7%, but over the last six months, it has risen 30.5%, reflecting the longer-term trend despite a temporary loss.

Market context 

HashKey was listed as the broader markets cooled. Bitcoin changed hands at about $87,000, well beneath the record $126,000 in October.

Hong Kong Financial Secretary Paul Chan joined the listing ceremony, underlining efforts by the city to lure new listings. 

HashKey has become the first cryptocurrency company to list in Hong Kong as a wave of initial public offerings has helped the city raise more than $34 billion so far this year in what is shaping up as one of its strongest years since 2021. 

Also Read: HashKey Raises $206 Million in Hong Kong Crypto IPO